ASSETS DESCRIPTION STANDARDS STATEMENT PRESENTATION EXAMPLES

APPLIED INTIAL SUBSEQUENT

Cash Cash includes PAS 1— Face Value Face Values Current Asset if unrestricted Current:
money and other Presentation of in use. (1) Cash on Hand
negotiable Financial Current (2) Cash in Bank
instrument that is Statements, Exchange Rate Separate presentation in
payable in money paragraph 66 - Foreign current portion if current but Noncurrent:
acceptable by the provides that an Currency restricted. (1) Refundable
bank for deposit entity shall classify deposits
and immediate an asset as current Noncurrent asset if set aside (2) Plant Expansion
credit. when the asset is for future use. Fund
cash and cash
equivalent unless it
is restricted from
being exchanged or
used to settle a
liability for at least
twelve (12)
months after the
reporting period
Cash Equivalents Cash equivalents PAS 1— Amortized Amortized Current Asset Commercial Paper
are short-term and Presentation of Cost Cost
highly liquid Financial Marketable
investments that Statements, Securities
are readily paragraph 6, “cash
convertible into equivalents are Money market
cash and so near short-term and funds
their maturity that highly liquid
they present investments that Treasury Bills
insignificant risk of are readily
changes in value convertible into
 because of changes cash and so near
in interest rates. their maturity that
Only highly liquid they present
investments that insignificant risk of
are acquired three changes in value
months before because of changes
maturity can in interest rates.”
qualify as cash
equivalents.
**TEMPORARY
INVESTMENTS***
\
BAI NOR
Accounts Accounts PAS 1— Face Amount/ Amortized Current Asset if expected to Interest Receivable
Receivable receivable are open Presentation of Original Cost/Net be realized in cash within the
accounts arising Financial invoice Realizable normal operating cycle or one Income tax
from the sale of Statements, amount Value year, whichever is longer. receivable
goods and services paragraph 66,
in the ordinary states “an entity Insurance claims
course of business shall classify an receivable
and not supported asset as current
by promissory when the entity
notes. expects to realize
the asset or intends
to sell or consume
it in the entity’s
normal operating
cycle or when the
entity expects to
realize the asset
within twelve
months after the
reporting period.
 PFRS 9—Financial
Instruments
Recognition and
Measurement,
paragraph 5.1.1,
provides that a
financial asset shall
be recognized
initially at fair value
plus transaction
costs that are
directly attributable
to the acquisition.
Estimated Doubtful The allowance for Financial An estimate An estimate Presented as a contra asset
Accounts/Allowanc doubtful accounts Accounting only of only of and set off/net with
e for Doubtful is only an estimate Standards Board accounts that accounts that corresponding accounts
Accounts of the amount of ASC 450-20-25-2, are are receivable.
accounts receivable accrual of losses reasonably reasonably
(contra asset) which are expected from uncollectible expected to expected to
to not be receivables if a loss be be
collectible. is probable and the uncollectible. uncollectible.
amount of the loss
can be reasonable
estimated
Other nontrade Nontrade PAS 1— Present value Amortized Current asset if expected to Current:
Receivables receivables Presentation of cost be realized in cash within one (1) Advances to or
represent claims Financial year, the length of the receivables from
arising from Statements, operating cycle employees
sources other than paragraph 66, notwithstanding. (2) Advances to
the sale of states “an entity suppliers
merchandise or shall classify an Noncurrent asset if collectible
services in the asset as current beyond one year. Noncurrent:
 ordinary course of when the entity (1) Special deposits
business. expects to realize on contract bids
the asset or intends (2) Subscription
to sell or consume receivable, not
it in the entity’s collectible
normal operating currently.
cycle or when the
entity expects to
realize the asset
within twelve
months after the
reporting period.
Notes Receivable Notes receivable PFRS 9—Financial Face amount - Amortized Current Asset - if expected to Current Asset:
are claims Instruments: short term. Cost be collected within one year (1) Note Receivable
supported by Recognition and or within the entity’s normal due within 6
formal promises to Measurement, Present Value operating cycle. months
pay usually in the paragraph 5.2.1, – long term (2) Current portion
form of notes. “subsequent to Noncurrent asset if collectible of long notes
initial recognition, beyond one year. receivable
long-term notes
receivable shall be Noncurrent Asset:
measured at (1) Notes
amortized cost Receivable due in 2
using the effective years
interest method (2) Notes
Receivable due in 3
years.
Loan Receivable Loan receivable is a PFRS 9—Financial Fair value plus Amortized Current Asset if collectible in Current Asset:
financial asset Instruments: transaction Cost less than a year. (1) Loan Receivable
arising from a loan Recognition and costs due in 6 months.
granted by a bank Measurement, Noncurrent asset if collectible (2) Loan Receivable
or other financial paragraph 4.1.2, beyond one year. collectible within
institution to a provides that if the one year.
 borrower or business model in Separate presentation under
managing financial noncurrent assets if Noncurrent Asset:
asset is to collect collectible beyond one year. (1) Loan Receivable
contractual cash with terms more
flows on specified than one year.
dates and the (2) Loan Receivable
contractual cash with terms more
flows are solely than years.
payments of
principal and
interest, the
financial asset shall
be measured at
amortized cost.

PFRS 9, paragraph
5.5.1 provides that
an entity shall
recognize a loss
allowance for
expected credit
losses on financial
asset measured at
amortized cost.
Inventory Inventories are PAS 2— Cost Lower of Cost Current Asset (1) Purchases
assets held for sale Inventories, states and Net (2) Finished goods
in the ordinary that: Realizable (3) Manufacturing
course of business, Value supplies
in the process of (1) details of the (4) Merchandise
production for such inventories shall be Inventory
sale or in the form disclosed in the
of materials or notes to financial
supplies to be statements.
 consumed in the
production process (2) paragraph 25,
or in the rendering expressly provides
of services. that the inventories
shall be
determined by
using either FIFO or
Weighted Average.

(3) paragraph 9,
provides that
inventories shall be
measured at lower
of cost and net
realizable value.
Prepaid Expenses Prepaid expenses Per Generally Face Value Expensed as Current Asset and expensed (1) Prepaid
are future expenses Accepted incurred as incurred Insurance
that have been Accounting (2) Prepaid Rent
paid in advance. In Principles (GAAP). (3) Prepaid Supplies
other words, In particular, the
prepaid expenses GAAP matching
are costs that have principle, which
been paid but are requires accrual
not yet used up or accounting.
have not yet Expenses should be
expired recorded when
incurred. Thus,
they have yet to be
incurred.

LUCERO
Revaluation An increase in Fair Value Fair Value As a component of other Revaluation for
 asset’s value in or comprehensive income- The building on time to
order to reflect the Depreciated Depreciated increase shall be credited to time basis
current market Replacement Replacement revaluation surplus, when an
value of an asset. It Cost Cost asset’s carrying amount is Revaluation for
is the positive increased as a result of the Land, upon price
difference between revaluation. estimates available
asset’s fair value in the market.
and its original cost
minus
depreciation.
Impairment- Is the fall in the PAS 36, paragraph Recoverable Recoverable The reversal of the A construction
Individual asset market value of an 114, provides that Amount Amount impairment loss shall be company may
asset so that the an impairment loss or or recognized immediately as experience
recoverable recognized for an Fair Value Fair Value income in the income impairment of its
amount is now less asset in prior years Less cost of Less cost of statement. outdoor machinery
than the carrying shall be reversed if Disposal, Disposal, and equipment in
amount in the there has been a whichever is whichever is the aftermath of a
statement of change in the higher higher natural disaster.
financial position estimate of the
recoverable Impairment of a
amount. building.

PAS 36, paragraph

117,provides that
“the increased
carrying amount of
an asset due to
reversal of an
impairment loss
shall not exceed
the carrying
amount that would
have been
 determined, had no
impairment loss
been recognized
for the asset in
prior years.“
Impairment of Is the smallest PAS 36, paragraph Recoverable Recoverable
Asset- Cash identifiable group 90, provides that a Amount Amount
Generating Unit of assets that cash generating or or
generate cash unit to which Fair Value Fair Value
inflows from goodwill has been Less cost of Less cost of
continuing use that allocated shall be Disposal, Disposal,
are largely tested for whichever is whichever is
independent of the impairment at least higher higher
cash inflows from annually by
other assets or comparing the
groups of assets carrying amount of
the unit, including
the goodwill, with
the recoverable
amount.

A.)If the
recoverable
amount of the units
exceeds the
carrying amount of
the unit, the unit
and the goodwill
allocated to that
units shall be
regarded as not
impaired.
 B.)If the carrying
amount of the unit
exceeds the
carrying amount of
the unit, the entity
must recognize an
impairment loss.
Intangible assets -Arises when an PAS 38- Intangible Residual Residual GAAP requires the aggregate The goodwill is
- Goodwill earnings exceed Assets, paragraph Approach Approach amount of goodwill be measured at the
normal earnings by 8, simply defines an presented as a separate line average excess
reason of good intangible assets as Direct Direct item of financial position earnings capitalized
name, capable staff identifiable Approach Approach and at 25%.
and personnel, high nonmonetary asset -Purchase of -Purchase of The aggregate amount of
credit standing, without physical “Average “Average goodwill impairment losses is The goodwill is
reputation for fair substance. It excess excess presented in the income measured at
dealings,reputation further states that earnings” earnings” statement before the subtotal average earnings
for superior “the intangible -Capitalization -Capitalization income from continuing capitalized at 10%.
products, favorable asset must of “Average of “Average operations.
location and a list controlled by the Excess Excess
of regular entity as a result of Earnings” Earnings”
customers. past event and -Capitalization -Capitalization
from which future of “Average of “Average
-Is an undeniably economic benefits Earnings” Earnings”
unique asset are expected to -Present Value -Present
presented in the flow to the entity. Method Value Method
financial *PAS 38, *PAS 38,
statement. mandates that mandates
Referred as the goodwill shall that goodwill
most intangible of not be shall not be
all intangible amortized amortized
assets. It is unique because the because the
in the sense that useful life is useful life is
goodwill standing definite. definite.
 alone cannot e
bought and sold.
Identifiable Is an exclusive right PAS 38- Intangible At Cost At cost Noncurrent Asset The artificial heart
Intangible Assets- granted by the Assets, paragraph valve
Patent government to an 8, simply defines an Revaluation Cell phones
inventor enabling intangible assets as Model, and
him to control the identifiable amortized on
manufacturer, sale nonmonetary asset a systematic
or other use of without physical basis over
invention for a substance. It useful lives.
specified period of further states that
time. The legal life “the intangible
of patent is 20 asset must
years. Under US controlled by the
GAAP, a patent is entity as a result of
classified as a past event and
technology-based from which future
intangible asset. economic benefits
are expected to
flow to the entity.”
Trademark Is a symbol, sign, PAS 38- Intangible At Cost At Cost Noncurrent Asset Black Mamba name
slogan or name Assets, paragraph of Kobe Bryant
used to mark a 8, simply defines an *Considering
product to intangible assets as the almost “Just Do it” and the
distinguish it from identifiable automatic name Nike
other products. nonmonetary asset renewal of a
Legal life 10 years without physical trademark, an
and maybe substance. It entity may
renewed for further states that properly
periods of 10 years “the intangible classify a
each. Market asset must trademark as
related intangible controlled by the an intangible
asset. entity as a result of asset with
 past event and indefinite life.
from which future The cost of a
economic benefits trademark is
are expected to not amortized
flow to the entity.” but subject to
test for
impairment at
least annually
and whenever
there is an
indication
that it may be
impaired.
Copyright Is an exclusive right PAS 38- Intangible At Cost The cost of Noncurrent Asset Literary works
granted by the Assets, paragraph the copyright Sound recordings
government to the 8, simply defines an shall be
author, composer intangible assets as AMORTIZED
or artist enabling identifiable OVER THE
the grantee to nonmonetary asset USEFUL LIFE.
publish, sell or without physical
otherwise benefit substance. It
from the literary, further states that
musical or artistic “the intangible
work. Legal life 50 asset must
years. Is an artistic controlled by the
related intangible entity as a result of
asset. past event and
from which future
economic benefits
are expected to
flow to the entity.”
Franchise Is an agreement PAS 38- Intangible Lump sum If the Noncurrent Asset Franchise of
between one party Assets, paragraph payment plus franchise is McDonalds
 called the 8, simply defines an directly granted for Franchise of
franchisor that intangible assets as attributable definite Jollibee
grants certain identifiable cost or initial period, the
rights to another nonmonetary asset franchise fee cost of
party called the without physical franchise shall
franchisee. It is a substance. It be amortized
contract-based further states that over the
intangible asset. “the intangible useful life or
asset must definite
controlled by the period
entity as a result of whichever is
past event and shorter.
from which future
economic benefits
are expected to
flow to the entity.”
Research Cost Is an original and
planned
investigation
undertaken with
the prospect of
gaining scientific or
technical
knowledge and
understanding.
Development Cost Is the application of
research findings or
other knowledge to
a plan or design for
the production of a
new or
substantially
improved material,
 device, product,
process, system or
service, prior to the
commencement of
commercial
production

Accumulated Is the total amount

Depletion